Developing a Government Reporting Taxonomy

2016 ◽  
Vol 30 (2) ◽  
pp. 49-81 ◽  
Author(s):  
Neal M. Snow ◽  
Jacqueline L. Reck
Keyword(s):  
Financial Reporting ◽  
Municipal Government ◽  
Financial Statements ◽  
Bond Market ◽  
Empirical Approach ◽  
Municipal Bond ◽  
Data Accessibility ◽  
Public Companies ◽  
Private Investors ◽  
Over Time

ABSTRACT The municipal bond market is a $3.7 trillion market with approximately 75 percent of the market held by private investors (SEC 2012). Municipal bondholders and potential buyers do not have the same level of information as those investors choosing to invest in public companies. This inequity is, in part, the result of poor data accessibility. Frequently the data provided are in a format that does not allow easy comparison across governments or over time. To increase comparability and consistency in government reporting we build a government financial reporting taxonomy using the empirical approach. The completed taxonomy has 194 terms that cover financial statements filed by municipalities. Expert analysts and preparers in government reporting reviewed the completed taxonomy. This study has implications for the municipal reporting market and those entities that regulate them by providing a validated municipal government financial reporting taxonomy.

How Does Information Processing Efficiency Relate to Investment Efficiency? Evidence from XBRL Adoption

2020 ◽  
pp. 0000-0000
Author(s):  
Xin Cheng ◽  
Feiqi Huang ◽  
Dan Palmon ◽  
Cheng Yin
Keyword(s):  
Information Processing ◽  
Financial Reporting ◽  
Investment Efficiency ◽  
Uncertain Information ◽  
Processing Efficiency ◽  
Public Companies ◽  
Exogenous Shock ◽  
External Monitoring ◽  
Processing Cost ◽  
Over Time

This study investigates whether information processing efficiency has an impact on public companies' investment efficiency. Using the adoption of XBRL as an exogenous shock that decreases information processing cost, we find that companies improve their investment efficiency after the adoption of XBRL. The effect is more pronounced for: 1) firms that have inferior external monitoring; 2) firms that operate in more uncertain information environments; and 3) firms that have less readable financial reporting. In addition, we find a learning curve in investors' understanding of XBRL over time. After splitting firms into over-investment and under-investment groups, we conclude that the XBRL mandate is more likely to curb managers' opportunistic over-investments. Our study extends the XBRL literature by providing empirical evidence on the effects of XBRL adoption from the perspective of managers.

Current issues of using discounted value in financial statements

2021 ◽  
Vol 20 (9) ◽  
pp. 1703-1730
Author(s):  
Ol'ga V. EFIMOVA ◽  
Ol'ga V. ROZHNOVA
Keyword(s):  
Analytic Function ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Public Companies ◽  
Russian Scientific ◽  
Scope Of Application ◽  
Reporting Data ◽  
Comprehensive Study

Subject. We address the determination and use of discounted value in the preparation of financial statements under IFRS and problems associated with this estimate, including in circumstances of pandemics. Objectives. We focus on a comprehensive study of the purpose, reasons, methods of calculating and applying the discounted value in the process of preparing the financial statements, and consider factors that affect the estimate and its changes, as well as its impact on the indicators of financial statements. Methods. The study employs methods of logical, statistical, comparative, and linguistic analysis. We also review foreign and Russian scientific and practical literature, the rules contained in the Conceptual Framework for Financial Reporting, consolidated financial statements of Russian public companies for 2019 and 2020. Results. We unveil problems associated with the use of discounted value and the area of its influence, make proposals to improve its measurement and disclosure in the preparation of financial statements. The scope of application of the results obtained includes: building up regular reporting by economic entities, primarily in terms of determining the discounted value, including in the direction of coordinating financial and non-financial reporting information and improving the reliability of disclosures and their analytic function. Conclusions. To improve the reliability of financial statements, it is crucial to expand disclosures about approaches and assumptions used in measuring the discounted value and coordinate information about the elements of discounted value with non-financial reporting data.

scholarly journals Extreme Estimation Uncertainty and Audit Assurance

2013 ◽  
Vol 7 (1) ◽  
pp. P36-P42 ◽  
Author(s):  
Brant E. Christensen ◽  
Steven M. Glover ◽  
David A. Wood
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Fair Value ◽  
Public Companies ◽  
Estimation Uncertainty ◽  
Auditing Standards

SUMMARY The overall uncertainty inherent in financial statements has increased in recent decades, but the related reports and required level of audit assurance have changed very little. In our study, “Extreme Estimation Uncertainty in Fair Value Estimates: Implications for Audit Assurance” (Christensen et al. 2012a), we examine estimates reported by public companies and find that estimates based on management's subjective models and inputs contain estimation uncertainty that is many times greater than typical audit materiality. We do not question the value that audits provide to the marketplace or the ability of auditors to deploy up-to-date auditing techniques. Rather, we suggest that the convergence of relatively recent events is placing an increasingly difficult and perhaps, in some cases, unrealistic burden on auditors. We discuss potential changes to financial reporting and auditing standards that may improve the information provided to users, and also address the concerns raised in our study.

scholarly journals NON-DISCLOSURE OF FINANCIAL STATEMENTS OF PUBLIC COMPANIES AS AN ECONOMIC OFFENSE IN THE REPUBLIC OF SERBIA

2021 ◽  
Vol 25 (3) ◽  
Author(s):  
Marija Kostić ◽  
Vule M. Mizdraković ◽  
Vladimir Mitić
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Legal Framework ◽  
Timely Manner ◽  
Public Companies ◽  
Official Gazette ◽  
Time Period ◽  
The Republic

The successful functioning and development of the capital market, along with the possibility of attracting new investments is largely contingent on the quality of financial reporting and the availability of the statements themselves. In view of the fact that the new Law on Accounting of the Republic of Serbia came into force, the question arises to what extent public companies respect legally prescribed deadlines for submitting their statements and by doing so do not commit an economic offense. The primary goal of this paper is to draw attention to the importance of a standardized and efficient legal framework that obliges public companies to publish financial statements in a timely manner. A survey was conducted that encompassed 416 public companies listed on the Belgrade Stock Exchange and their corresponding financialstatements for 2018, as the reporting period. We tried to establish whether the sampled companies disclosed their statements within the deadline prescribed by the Law on Accounting (Law on Accounting, Official Gazette of RS, 62/2013, 30/2018). The results show that most companies disclosed financial statements during the period when they are still considered useful to potential and existing investors. Nevertheless, practice showed that there was room for improvement, and this was achieved with the adoption of the new Law on Accounting, which took effect on January 1, 2020. It integrates the deadline for compiling and disclosing statements, which in fact shortens the time period during which information on the companies’ operations should be made available to the general public and potential investors.

IFRS Convergence and Revisions

2016 ◽  
pp. 169-190
Author(s):  
Erick R. Outa ◽  
Nelson M. Waweru
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Reporting Quality ◽  
Positive Coefficient ◽  
Net Income ◽  
The Impact ◽  
Timely Loss Recognition ◽  
Over Time

This chapter is aimed at examining the impact of IFRS convergence and revisions on the financial statements of companies listed in East Africa. This was achieved by determining whether firms report losses (LNEG) when they occur (timely loss recognition) or report small positive income (SPOS) or whether incomes reported exhibit variability in net income (NI) over time. Simultaneously, the chapter tests whether there is any influence of corporate governance on these three measures which are considered indicators of financial reporting quality. Four models applying GLS random effects are applied on 520 firm year observations for firms listed in Nairobi Securities Exchange (NSE) between 2005 and 2014. The result shows that a positive coefficient on frequency of large losses reported in the finding interpreted as firms with converged and revised IFRS recognize large losses (LNEG) as they occur. The findings also show a negative coefficient on small positive income (SPOS) interpreted as firms applying non-converged and revised standards manage earnings towards small positive amounts more than firms applying converged standards. The post convergence\revisions are significant for Chi, R2 and the residual which suggest that variability in net income (NI) improved in the post convergence period while corporate governance show insignificant mixed coefficient with the three indicators.

scholarly journals Teknologi Informasi Berbasis XBRL Dan Potensi Peningkatan Kualitas Pengungkapan

2021 ◽  
Vol 5 (1) ◽  
pp. 1-10
Author(s):  
Hendra Tanjung
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Reporting System ◽  
Data Transfer ◽  
Management Practice ◽  
Financial Statements ◽  
Relevant Information ◽  
Public Companies ◽  
Business Reporting

Various countries globally have widely used eXtensible Business Reporting Language (XBRL) technology for the financial reporting of public companies. However, studies on the sophistication of XBRL technology and its potential for improving the quality of disclosure have not been widely reviewed. This paper examines this matter with the literature review method, and conclusions are prepared based on qualitative analysis. The XBRL-based reporting system has many advantages compared to the previous reporting system, including faster data transfer, efficiency, and others. In addition, the tag system in XBRL allows users to know more details about the information conveyed. The tag system allows users to search for relevant information and easily compare with different companies. Therefore, the management practice of disclosing financial statements and financial statements is presented explicitly to users of financial statements. Thus, the sophistication of a reporting system based on information technology XBRL can increase transparency and better disclosure.

Does the Year 2000 XBRL Taxonomy Accommodate Current Business Financial-Reporting Practice?

2002 ◽  
Vol 16 (2) ◽  
pp. 165-182 ◽  
Author(s):  
Matthew Bovee ◽  
Michael L. Ettredge ◽  
Rajendra P. Srivastava ◽  
Miklos A. Vasarhelyi
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Public Companies ◽  
Reporting Practices ◽  
Business Reporting ◽  
Extensible Markup ◽  
Information User ◽  
Two Measures ◽  
Year 2000

XBRL (eXtensible Business Reporting Language) is an application of XML (eXtensible Markup Language) intended for use in digital business reporting. Observers predict XBRL will provide benefits to firms that adopt it, such as enhancing information use, facilitating comparability and consistency, and providing technological capability for near-continuous financial reporting through the Web. However, questions arise regarding how well the proposed taxonomy for financial statements corresponds to firms' preferred reporting practices. We argue that a poor fit may lead to information loss and to subsequent resistance to use or general adoption of the taxonomy. A lack of fit could therefore negate anticipated firm or information-user benefits. To address this issue, we assess how well the year 2000 version, for financial reporting by commercial and industrial (C&I) firms under U.S. GAAP, accommodates current financial-reporting practices of public companies. We attempt to match each line item in the 1999 annual financial statements of 67 companies with an XBRL taxonomy “tag,” employing two measures of the frequency of “special attention” (difficult-to-match) items as indicators of the quality of “fit” between the taxonomy and firms' reporting practices. Analyses show a good fit on average, but also indicate significant differences in the number and proportion of exceptions across financial statements and industries. In light of these results, we suggest modifications to the taxonomy and discuss the need for industry-specific taxonomies.

scholarly journals The Composition of Independent Board of Commissioner and Number of Board of Commissioner Meeting Towards Fraudulence of Financial Report (Empirical Study at Public Company Listed at Indonesia Stock Exchange in 2011-2017)

2019 ◽  
Vol 10 (4) ◽  
pp. 96
Author(s):  
Sudarman ◽  
Aniqotunnafiah ◽  
Masruri
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Financial Statements ◽  
Board Composition ◽  
Fraudulent Financial Reporting ◽  
Public Companies ◽  
Financial Report ◽  
Negative Effect

This study aims to obtain empirical evidence about the effect of corporate governance mechanisms on fraudulent financial reporting. The variables of corporate governance used are independent board composition, frequency of board commissioner meetings, and external auditor quality as moderating variables between the influences of independent board composition, number of board of commissioners meetings against fraudulent financial reporting. The population of this study was public companies listed on the Indonesia Stock Exchange in 2011 - 2017. The total samples of this study were 76 companies, consist of 38 companies reported committing fraudulently financial statements and 38 companies that did not cheat financial statements. Data analysis was carried out by descriptive analysis, crosstab and hypothesis testing using the logistic regression method. The results of this study indicate the composition of the independent board of commissioners and the frequency of board of commissioners meetings has a significant and negative effect on the fraudulent financial report. Also, the quality of external auditors can strengthen the influence of the composition of the independent board of commissioners and the number of board of commissioners meetings on the fraudulent financial reporting.

scholarly journals Inflation and Nominal Financial Reporting: Implications for Performance and Stock Prices

2011 ◽  
Vol 86 (3) ◽  
pp. 1045-1085 ◽  
Author(s):  
Yaniv Konchitchki
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Financial Statements ◽  
Cash Flows ◽  
Economic Consequences ◽  
Gains And Losses ◽  
Flows Over Time ◽  
Future Cash Flows ◽  
Over Time

ABSTRACT: The monetary unit assumption of financial accounting assumes a stable currency (i.e., constant purchasing power over time). Yet, even during periods of low inflation or deflation, nominal financial statements violate this assumption. I posit that, while the effects of inflation are not recognized in nominal statements, such effects may have economic consequences. I find that unrecognized inflation gains and losses help predict future cash flows as these gains and losses turn into cash flows over time. I also find significant abnormal returns to inflation-based trading strategies, suggesting that stock prices do not fully reflect the implications of the inflation effects for future cash flows. Additional analysis reveals that stock prices act as if investors do not fully distinguish monetary and nonmonetary assets, which is fundamental to determining the effects of inflation. Overall, this study is the first to show that, although inflation effects are not recognized in nominal financial statements, they have significant economic consequences, even during a period in which inflation is relatively low.

Revitalizing Municipal Bond Market : The Case of Total Bond Limits Policy

2019 ◽  
Vol 17 (1) ◽  
pp. 175-195 ◽  
Author(s):  
Il Hwan Chung ◽  
◽  
Eung Gil Kim
Keyword(s):  
Bond Market ◽  
Municipal Bond
Sign in / Sign up

Export Citation Format

Share Document